Band Capital, a decentralized finance (DeFi) startup backed by Sequoia India, has announced the launch of its mainnet on Monday along with a decentralized application (DApp) – BitSwing – to offer Bitcoin binary options trading.
First reported by The Block, the DApp will allow traders to take either long or short positions on Bitcoin prices in a BTC/USD market. Initially, the positions can be taken for an interval of one minute, however, the firm has plans to expand the prediction window, along with the addition of other digital currencies.
To trade the Ether-denominated binary options, traders need to use Metamask or any other Web3 wallets that operated on the Ethereum-based Kovan testnet. With the simplified prediction on Bitcoin prices, traders will either double their amount of Ether put in or lose it all.
Prior to the launch, the company released BitSwing’s testnet for a week which recorded over 40,000 transactions, the company detailed.
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To provide reliable price data to the users, the company is sourcing it from exchanges like CoinGecko, Binance, and Upbit.
A lucrative market for crypto price prediction
Prior to the launch of its blockchain, the blockchain company earned $12,000 in ETH from data query fees in its first two weeks. Going at this rate, it is expected to generate “over $300,000 in value per annum for its ecosystem via BitSwing alone.”
Founded in 2017, Band Capital raised $3 million in February in a fundraising round led by Sequoia India. The company last month conducted a token sale on Binance’s initial exchange offering (IEO) platform. After selling $5.85 million worth tokens, the total capital raised by the company touched $10.85 million.
Recently, DeFi startups are gaining much attention in the market and major platforms are also jumping in to support such projects. In August, Huobi Wallet added support for two decentralized finance (DeFi) projects – Compound and MakerDao.